Personal Finance
Author Shubham C Pandey
Sacrificial Labor: Money to Poor Consumers.
VARMAN, R et al (2022) stated that The concept of sacrificial labor presents valuable insights into the often disregarded of how individuals, especially those from less well-off backgrounds, gather and allocate funds for altruistic purposes. This encompasses aiding others, fostering community bonds, and fostering personal growth in a much needed way. Although initially centered on the financial sacrifices of economically disadvantaged consumers, this study suggests broader implications, such as the sacrificial acts of affluent parents for their children and community members for the marginalized, you know. It also suggests avenues for future inquiry, such as investigating sacrificial labor within migrant households and its implications for gender dynamics, highlighting its pivotal role in shaping societal frameworks and interpersonal connections! Despite its importance, sacrificial labor has been overlooked in consumer research, emphasizing the necessity for its inclusion in future investigations.
Technology and Finances Across Generations
CARLIN, B et al (2019 ) stated that the utilization of technology among different age groups for accessing information in various domains such as markets, finance, consumption, and managing financial penalties. The findings indicate that older individuals tend to utilize credit more often and face higher fee charges despite having greater financial liquidity. Conversely, younger individuals demonstrate a higher propensity to adopt new technologies, potentially resulting in improved access to real-time information and avoidance of financial penalties. The study recommends policymakers adopt a comprehensive strategy, incorporating technological tools and reminders tailored to younger generations, alongside traditional methods suited for older individuals, to enhance consumer welfare in financial markets.
Learning About Money: A Study for Students
GERRANS, P et al (2019) stated that the effectiveness of financial education programs for undergraduate students, an area that hasn’t received much attention in existing literature. Despite the considerable costs associated with such initiatives for both educational institutions and students, the study investigates enrollment trends and outcomes through a quasi-experimental method. Surprisingly, it finds that students who sign up for financial literacy courses tend to have lower levels of initial financial knowledge than expected. This research sheds light on the factors influencing students’ decisions to voluntarily enroll in such programs and highlights their impact on improving financial literacy, particularly among female students. Notably, the study underscores the significance of involving parents and other socializing agents in educational strategies to address gender disparities in financial literacy. While the results indicate promising improvements in financial knowledge among participants, the study acknowledges limitations regarding its generalizability and short-term effects, necessitating further longitudinal investigations. Nevertheless, it emphasizes the importance of tailored interventions and reliable information sources in enhancing financial literacy among undergraduate students, advocating for continued research and expansion of educational initiatives in this field.
Money Matters: Learning and Growing
VITT, L. A (2004) stated that the Education levels have a significant impact on both career opportunities and income, influencing various aspects of life such as where one resides, social interactions, and leisure activities. Understanding personal finance is beneficial as it improves access to essential services like healthcare, credit facilities, investment opportunities, and measures for safeguarding assets. The belief in one’s abilities, known as self-efficacy, plays a vital role in achieving financial stability and success. Individuals tend to prioritize tasks they feel confident in, which affects their financial decision-making. Developing financial self-efficacy requires engaging in challenging activities, having a supportive network, and building on past achievements. Effective financial education should not only offer practical knowledge but also provide guidance and encouragement. By aligning financial education with the values of consumers, it can empower individuals to attain financial independence. Financial professionals need to understand and cater to the needs of consumers to bring about meaningful changes in financial behavior.
Power Makes People Save More!
GARBINSKY, E et al (2014) stated that the influence of power on saving behavior, researchers propose that individuals with a sense of power are inclined to save more as a means of preserving their status. Through a series of five studies, they confirm that feeling powerful correlates with increased saving compared to feeling powerless. This effect remains consistent across various scenarios and is attributed to the desire to uphold one’s current position. Furthermore, the research suggests that the relationship between power and saving weakens when power is already secured or maintained through means other than financial resources. While accumulating money is commonly seen as a strategy for maintaining power, the study indicates that this effect may diminish when power is associated with non-monetary resources.
Educating Our Youth on the Basics
WAGONER, J (2012) stated that ,In March, Florida enacted bill S.B. 1054, which requires high school students to complete a thirty-minute elective course in financial literacy as a graduation requirement. This legislation aims to address the deficiency of financial education among young adults, which is vital for managing various financial aspects of life. The curriculum of the course includes essential topics such as bank account management, credit management, debt handling, loan applications, insurance knowledge, and taxation. Currently, only 57% of adults in the United States possess financial literacy skills, with significant differences observed across different demographic groups. The American Public Education Foundation’s evaluation of financial literacy education across states revealed Florida’s commitment to improving its ranking by implementing this bill. Personally, having received inadequate financial guidance during my high school years in Wyoming, I experienced challenges with tax filing and credit card management, underscoring the importance of such educational initiatives.
Digital Changes in Money and Banking
KOSKELAINEN, T. et al (2023) stated The existing literature delves into the ramifications of digitalization on financial sectors such as retail banking, investment, and payment services, highlighting notable shifts. While fundamental financial literacy remains beneficial for personal finance management, ongoing digital advancements reshape individuals’ financial understanding and competencies. Despite the introduction of novel financial services and tools through digitalization, associated risks also emerge. This investigation aims to delve into the influence of digitalization on financial literacy and capability, delineating three pivotal themes: Fintech, financial conduct within digital realms, and interventions to influence behavior. Additionally, a proposed framework illustrates how these themes impact conventional financial literacy components. Recommendations stemming from this inquiry encompass updating financial literacy programs, creating digital educational resources, assessing digital financial literacy, and fostering collaboration between regulatory bodies and private entities. Nonetheless, the study acknowledges its limitations and suggests avenues for future research to deepen comprehension of digital financial literacy and capability.
Tech Solutions for Tax…!!
MURPHY, M. L, (2024) stated that tax preparation companies are utilizing technology to streamline operations and alleviate staff workload. They are embracing solutions like QuickBooks, transitioning to cloud-based systems, and delegating tasks to third-party providers equipped with automation tools. Client portals are being employed for improved communication, allowing interaction from both ends. The COVID-19 pandemic has expedited the adoption of electronic communication methods, such as electronic organizers and portal platforms like TaxCaddy. Educating clients on data sharing procedures fosters stronger client relationships. Firms are increasingly integrating automation for value-added consultancy, utilizing secure channels for document exchange, electronic signatures, and IRS payments. This strategy not only reduces paperwork but also cuts down on postage expenses and administrative time, with a growing trend towards electronic filing of tax returns.
Smart Money Tips for Everyone
CHOI, J. J (2022) stated The disparity between commonly held financial advice and standard economic theory arises from inherent fallacies. Nonetheless, popular financial guidance offers distinct advantages compared to economic theory. Firstly, it provides straightforward actions that everyday individuals can easily implement, eliminating the need for intricate problem-solving. Additionally, it acknowledges the obstacles individuals encounter in executing financial plans, such as limited motivation or emotional reactions. Consequently, popular advice proves more practically advantageous for the average person. To advance research in this area, it would be valuable to integrate these elements into normative economic models instead of relegating them exclusively to non-economists.
Money and People: Finance and Learning
Shubham C. P (2023) stated that The finance and consumer behavior research, offering valuable insights. Topics covered include sacrificial labor, the impact of technology on financial behavior, the effectiveness of financial education programs, and psychographic factors influencing life insurance demand. Each study addresses different dimensions of financial decision-making, illuminating issues such as socio-economic disparities, the role of power in saving behavior, the influence of digitalization on financial literacy, and the practical implications of financial guidance. Together, these studies deepen our understanding of the intricate factors influencing individual financial choices and underscore the importance of customized interventions and educational efforts to improve consumer welfare and financial literacy.
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Reference
CARLIN, B.; OLAFSSON, A.; PAGEL, M, 2019. Generational Differences in Managing Personal Finances. AEA Papers & Proceedings, [s. l.], v. 109, p. 54–59, DOI 10.1257/pandp.20191011. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=fad39334-8aa4-3172-8c48-758b9f06384e. Acesso em: 15 fev. 2024.
CHOI, J. J,2022. Popular Personal Financial Advice versus the Professors. Journal of Economic Perspectives, [s. l.], v. 36, n. 4, p. 167–192. DOI 10.1257/jep.36.4.167. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=83cce6bc-30e6-39c6-ba35-91ef5b995471. Acesso em: 15 fev. 2024.
GARBINSKY, E. N.; KLESSE, A.-K.; AAKER, J, 2014. Money in the Bank: Feeling Powerful Increases Saving. Journal of Consumer Research, [s. l.], v. 41, n. 3, p. 610–623. DOI 10.1086/676965. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=54ed8fbb-86b9-3b9e-8a44-883a9c162fe4. Acesso em: 15 fev. 2024.
GERRANS, P.; HEANEY, R.; SMITH, T, 2019. The impact of undergraduate personal finance education on individual financial literacy, attitudes and intentions. Accounting & Finance, [s. l.], v. 59, n. 1, p. 177–217. DOI 10.1111/acfi.12247. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=690d2150-774e-3534-8d1e-b1895b796ea6. Acesso em: 15 fev. 2024.
HEO, W.; JAE MIN LEE; NARANG PARK, 2022. Psychographics Related to the Ownership of Life Insurance. Journal of Financial Planning, [s. l.], v. 35, n. 6, p. 72–76. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=d93a59b5-f1f6-3294-ae40-cda06cef1bf0. Acesso em: 15 fev. 2024.
KOSKELAINEN, T. et al, 2023. Financial literacy in the digital age—A research agenda. Journal of Consumer Affairs, [s. l.], v. 57, n. 1, p. 507–528. DOI 10.1111/joca.12510. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=847a55d1-1ee6-3333-95f8-e44d16d2957f. Acesso em: 16 fev. 2024.
MURPHY, M. L, 2024. Tips for a better tax season: Practitioners should address tax provision changes andpractice management issues. Journal of Accountancy, [s. l.], v. 237, n. 1, p. 6–9.Disponível em:https://research.ebsco.com/linkprocessor/plink?id=90664f63-782e-3178-9471-41c64586ac58. Acesso em: 15 fev. 2024.
VARMAN, R.; SREEKUMAR, H.; BELK, R. W, 2022 Money, Sacrificial Work, and Poor Consumers. Journal of Consumer Research, [s. l.], v. 49, n. 4, p. 657–677. DOI 10.1093/jcr/ucac008. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=f1a6635b-3168-3e5f-88f2-86df308b6e8b. Acesso em: 15 fev. 2024.
VITT, L. A, 2004.Consumers’ Financial Decisions and the Psychology of Values. Journal of Financial Service Professionals, [s. l.], v. 58, n. 6, p. 68–77,Disponível em: https://research.ebsco.com/linkprocessor/plink?id=a29e4610-18fd-3b59-a649-fe6c4551a7ea. Acesso em: 16 fev. 2024.
WAGONER, J, 2012. Personal Budgeting: What Are We Trying to Do? Journal of Financial Service Professionals, [s. l.], v. 66, n. 1, p. 10–12.Disponível em: https://research.ebsco.com/linkprocessor/plink?id=0d38586e-61e6-3b7a-bbfa-17deb19e692e. Acesso em: 16 fev. 2024.